Seaspan Acquires Greater China Intermodal Investments - Quick Facts

RTTNews

Mar. 14, 2018, 06:48 AM

(RTTNews) - Seaspan Corp. (SSW) announced the company has acquired the remaining 89% it did not own of Greater China Intermodal Investments LLC from affiliates of The Carlyle Group and the minority owners of GCI. The consideration to selling shareholders will be cash of approximately $330 million and a $50 million issuance of Seaspan Series D preferred shares.

The implied enterprise value of GCI is approximately $1.6 billion, including assumed third party net debt of approximately $1.0 billion and $140 million of future vessel payments.

GCI's current fleet will contribute approximately $1.3 billion towards Seaspan's contracted future revenues, increasing Seaspan's total contracted future revenues to approximately $5.6 billion. In calendar year 2019, with an 18 vessel fleet, GCI is expected to generate $185 million to $200 million in annual EBITDA.

Seaspan also announced that Fairfax Financial Holdings Limited, through certain subsidiaries, has entered into definitive agreements for an additional $250 million investment in Seaspan Debentures and Warrants. The $250 million investment will be funded in January 2019.